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Summer 2016 brings 'volatile' grain prices

Area grain prices are facing a "very volatile" market according to area elevators. This summer, area grain prices -- especially soybeans and corn -- have fluctuated. And according to Jim Morken, the general manager at CHS Farmers Alliance in Mitc...

Corn (Republic file photo)
Corn (Republic file photo)

Area grain prices are facing a "very volatile" market according to area elevators.

This summer, area grain prices - especially soybeans and corn - have fluctuated. And according to Jim Morken, the general manager at CHS Farmers Alliance in Mitchell, lately the prices seem to be a little lower.

"It's been a very volatile market. We've seen both sides," Morken said. "... It's been a very active summer for prices."

At the end of this week, corn prices sat at $3.15 for CHS Farmers Alliance in Mitchell, while soybeans hit $9.94.

Morken said historically, prices have remained on the lower range, particularly for corn. In mid-May, corn prices sat at $3.31, while mid-June prices topped at $3.83.

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"That's very normal," Morken said. "It's always more volatile prices in the summertime, and weather is a major factor."

This June, the Mitchell area has seen nearly three inches less of precipitation compared to last year, receiving only 2.74 inches. Last year, precipitation levels reached 5.25.

Morken said his only advice for farmers is to watch and see if the prices bounce despite the hot, dry weather. When prices bounces in a positive direction, farmers should take an advantage of that, Morken said.

Prices will vary from every producer and cost of production, Morken said, but overall soybean prices are higher than corn.

At CHS Farmers Alliance, soybean prices topped at $9.94 this week, while a month ago, soybean prices sat at $9.69. In mid-May, soybean prices were lower, sitting at $9.48.

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